Elliott Management has been granted more time by a US bankruptcy judge to work on the formalities of its plan to buy Oncor Electric Delivery Company.
The activist hedge fund has been given 11 more days as per a report in Reuters to make a formal offer before the court clears the $9bn offer from Warren Buffett’s Berkshire Hathaway Energy.
The approval for Berkshire Hathaway’s merger deal has been pushed back to August 21 by Judge Christopher Sontchi of the Delaware bankruptcy court.
Berkshire Hathaway Energy chief financial officer Patrick Goodman told the judge that the company would exit from the deal if it doesn’t get the court approval by August 21.
According to Berkshire Hathaway, securing the bankruptcy court schedule was a key development in the acquisition process. It also plans to continue to engage with stakeholders in Texas to get more support for its bid for the electric utility.
Berkshire Hathaway Energy chairman, president and CEO Greg Abel said: “We are pleased with the Bankruptcy Court’s decision, which maintains the timelines set forth in our merger agreement.
“Our offer is a simple, straightforward deal that is beneficial to Oncor’s customers. Once the necessary approvals are received, we’re looking forward to Oncor joining the many Berkshire Hathaway businesses that are helping to grow the economy in Texas.”
Berkshire Hathaway has so far garnered support from 10 major stakeholder and consumer groups for its offer and 47 regulatory commitments as part of the transaction.
Image: Elliott Management gets more time to prepare offer for Oncor. Photo: courtesy of sirirakphotos/FreeDigitalPhotos.net.